Unfortunately, some people stop looking because the jobs just aren't there. We have friends in MI who are educated, ambitious, intelligent, and have tons of work experience. They were laid off, and some have been actively looking for jobs for 2-3 years (others as little as several weeks, of course). Unfortunately, there's literally nothing for them in that state, and this is where it gets sticky. Most of them own homes that they cannot sell, and jobs aren't paying enough to pay a mortgage in MI and rent/mortgage/long-term hotel in another state, nor are the jobs willing to pay to relocate, etc. The economy is bad, and therefore employers have their pick of candidates for very low costs and benefits--in most cases, they're not willing to give much to one person when they can get another person for much less.
These people are trying to save their credit and not let the banks foreclose, but some of them have recently mentioned this may be their only option in the very near future. These people do not live above their means. Indeed, most of them lived well below their means and built up tidy nest eggs, which are now running out. Most cannot reasonably do things like join the military (they're all over 35, which makes getting in darn near impossible, and several have some minor health issues that preclude it). Several are re-training, because the state will pay for it; but, there aren't really jobs in the area even for "re-trained" people. My brother is one of these people. He'd worked in a paper mill in the Upper Peninsula since he was 17, and is now 50. He got laid off about almost two years ago, and can find no work. He's retrained as a truck driver & heavy equipment operator, and can still find no work, inside the state or out. He's willing to relocate, since he owns his house and can just close it up and return on vacations, but no one wants a 50-year-old, inexperienced truck driver or heavy equipment guy.
It's a conundrum, and it's really hard to watch our friends and family go through this. I am so glad we didn't own property, and that we moved out of that state when we did!
"This isn't life in the fast lane, it's life in oncomming traffic." -Terry Pratchett